How to use your flexible spending account (FSA)

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1 How to use your flexible spending account (FSA) Health care Understanding your flexible spending account plan doesn t have to be hard. We re here to help you understand how everything works and get the most from your plan. What is a flexible spending account (FSA)? An FSA is a benefit sponsored by your employer. You get to reduce your taxes and increase your take-home pay by setting aside pretax dollars. You can use this money to pay for eligible expenses like: Health care Vision care Dental care The type of FSA you have determines what expenses are eligible. For example, you might be able to use it for all of your out-ofpocket medical expenses, or for child care needs. Depending on your health plan and what spending accounts your employer offers, you could have more than one account. With an FSA, you set aside money to pay for eligible expenses before taxes are taken out of your pay. This lowers the pay you re taxed on and the taxes you owe. You put money in your own FSA with a deposit from your salary before taxes. Do I qualify to participate in the FSA? Need to be at a Part Time or Full Time eligible status How much can I put in? One thing to think about when you sign up for an FSA, or when you are starting a new plan year, is how much you should put in from your pay. These amounts are limited by law. The limits are: Health care FSA - $ 2,650 How do I figure out how much to put in? Grab your health care statements from the last year. Add up what you spent, and think about any changes you plan on in the coming year, and consider how much they will cost. Are you planning a surgery? These are expenses you can plan for and save some money. Based on what you spent last year and any changes you expect, choose the amount you d like to put in your FSA. So what if I have a health plan with a health savings account (HSA) or health reimbursement account (HRA)? An FSA can be offered with any medical or dental plan. However, according to IRS rules, if you contribute to an HSA you can only sign up for a limited-use FSA. A limited-use FSA only reimburses expenses for vision and dental services. You can sign up for an FSA even if you don t have your company s health plan. You just need to meet any of your employer s eligibility requirements for the FSA. What happens to my FSA money if I leave my job? Check with your employer for more information on your plan options if you leave your job. My spouse and I work for the same company. How does this work? You can use the same FSA for multiple people in your family. If you and your spouse work at the same company, and you use automatic for your health FSA, there is one thing to think about. The same person should be the account holder for both the FSA and the health plan. For

2 example, if you are the account holder for the medical plan, you should also be the account holder for the FSA. It is also important to remember that the maximum limits apply. I have an FSA with HealthPartners. Now what? One of the first things you ll want to do, if you haven t already, is create an account on healthpartners.com/centracare. With an account, you can submit your expenses for reimbursement, check your FSA balance, and get information on your HealthPartners medical plan, if you have one. Go to healthpartners.com/centracare and select Sign up to create an account. HealthPartners also has a mobile app that you can download. In 2018, you are able to submit your FSA expenses and documents through the app. After signing up for an FSA, you ll get a summary plan description (SPD) that explains the details of your plan. You can always call Member Services with any questions at What happens to the money in my FSA if I don t use it all in one year? The IRS has a use it or lose it rule for FSAs. This means you ll lose any unused money that s still in your FSA at the end of the plan year. Your employer allows you to roll over up to $500 of your unused money in your health FSA for next year. How does a rollover work? As long as you re still employed at an eligible status at the time of the rollover, unused health FSA money, up to $500, can be rolled over to the next plan year. This happens shortly after the plan year closes. Your prescription debit card Watch the mail your card will come in an envelope from HealthPartners. Your plan includes a prepaid debit card for your FSA to pay for medications. The prepaid card is a Visa that gives you an easy, automatic way to pay for eligible prescription expenses. Your card works just like a Visa. If Visa is accepted, you can just swipe your card or write the number on the bill (if you get a bill for your prescription). The amount of the eligible prescription purchases will be deducted automatically from your account and the pre-tax dollars will go to the provider or merchant for payment. How do I activate the card? When you get your card, just call the toll-free number on the activation sticker on the front. You ll get two cards in the mail you only need to activate one. Wait one day before you use your card for it to activate. Just like any card, be sure to sign your name on the back. If someone else on your plan wants to use the second card, have them sign their own name on the back, even if your name is on the front. Do I need to wait for my contributions to be deposited before I can use the card? If you have a health FSA, the full amount that you decided to contribute will be deposited in your account at the beginning of the year. For example, if you decided to add $100 each month, your account will have $1,200 at the beginning of the year. That s the total amount that you have for the year to use your prescription debit card or submit a claim for reimbursement. Do I need a new prepaid card each year? No, you don t need a new card each year. For a health FSA, the card will be loaded with the new contribution amount at the start of each plan year. The card will have an expiration date on it and a new card will be sent to you about 30 days before the old card expires.

3 What can I use my FSA for? There are different kinds of FSAs. Depending on what is available to you, you could use your FSA for medical expenses, vision, or dental. Health care For an FSA that covers your medical expenses, an eligible expense is an expense you pay for your health care needs. Prescriptions, copays, coinsurances and deductibles are all eligible expenses. Here are some examples of eligible expenses. A full list is available at healthpartners.com/myfsa. Doctor visits Prescriptions Glasses, contacts or laser eye surgery/lasik Medical equipment that you use at home Dental and orthodontic care Dental care and vision care that aren t covered by a health plan are also eligible. Generally, deductions that qualify as medical expenses on your federal income taxes can be reimbursed through your FSA. You can log on to healthpartners.com/myfsa to view a full list of common qualified expenses. How do I submit my expenses? So how do you actually use your FSA? There are many ways to pay for and submit your expenses. You can do it through the mobile app, online, by mail or fax. If you have a debit card, the expense amount is automatically deducted when you use the card. You can only use your debit card for qualified prescription expenses. Medical expenses will be automatically submitted for reimbursement if you have a HealthPartners medical plan. FSA options Automatic Online Mobile app Manual Health care X X X X Health care - prescriptions X X X X Prescription debit card Automatic how does it work? If you have medical expenses and on a CentraCare medical plan through HealthPartners insurance, medical claims are sent to HealthPartners for processing. If you have to pay some of the costs, then it s automatically sent to your health reimbursement account (HRA), with the exception of prescription claims. Once your HRA funds are exhausted, it will be sent to your health care FSA for processing. The money is deducted from your FSA account so you can then pay your Provider, but you will be reimbursed for the expense automatically. As prescription expenses are not eligible to be reimbursed from your HRA, you can elect a health care FSA and use your prescription debit card to pay for the prescription at the point of sale. You can t use automatic if: 1. You have dual health plan coverage through your spouse 2. You have a dependent covered under their health plan who doesn t qualify as a tax dependent under the federal tax code Tips for submitting documentation: Keep all receipts. Read all letters and s from HealthPartners. We ll let you know when documentation is needed. Send in documentation right away. Your card could be suspended if you wait too long. If you don t have a HealthPartners medical plan, make sure you have access to your Explanation of Benefits (EOB) for your medical claims. You can opt out of the automatic feature online or by calling Member Services at

4 What if I don t want certain claims to go through the FSA or HRA? When you have automatic, all of your medical claims go through your HRA first, then your FSA. If you don t want all medical claims to go through these accounts, you can opt out of automatic. Then you can choose which expenses you want to submit, either online or manually. Remember that even if you submit manually, your medical expenses will pay from your HRA first if you have one. Your 2018 HRA dollars will roll over to your 2018 account after April 1. Here s how it works before they re rolled over: Your medical claims are paid from the money you currently have in your 2018 accounts. Claims pay from the HRA first, then the FSA. If some of your FSA dollars are used before the HRA rollover, we can easily make an adjustment. Call HealthPartners Member Services after April 1. We ll make an adjustment to show payments from your HRA and credit your FSA. Can I turn off automatic to my FSA? Yes, you can opt out of the automatic feature. Call Member Services at or log on to your account at healthpartners.com/centracare. If you have an HRA health plan, opting out of automatic crossover applies to that too. You can t opt out of only the FSA automatic. Online how does it work? You can submit your expenses online in your account at healthpartners.com/centracare. You should submit your expenses this way if you don t have automatic for medical expenses. Mobile app how does it work? Download the myhp mobile app, by searching myhp in the App Store or Google Play Store. Submit your expenses by entering the claims information and taking a picture of the documentation. Manual how does it work? For eligible expenses, you fill out an FSA reimbursement request form and send it to HealthPartners by fax or mail. Forms are online at healthpartners.com/centracare or you can call Member Services at When you do a manual, include documents like: A health care explanation of benefits (EOB). If you have HealthPartners health insurance, you can find this online when you log into your account. If you don t have HealthPartners health insurance, you should follow your health insurance company s process for obtaining EOBs. Detailed receipts Payment plan for regular expenses (like braces) You can fax your to or or mail it to the address at the bottom of the form. Why does HealthPartners need proof of expenses/receipts? Federal law requires that we make sure all FSA expenses are eligible. If the IRS sees that an ineligible expense was reimbursed, the entire group could be taxed on the money they contributed to FSAs, not just the account that had an ineligible expense. That extra step can prevent you from potentially paying more on your taxes. When do I have to submit documentation? If you submit your expenses online or manually, you ll need to send documentation. If your account has automatic or you use a debit card, you usually won t need to give additional documentation. Sometimes, we aren t able to verify these expenses and then you d need to send documentation. We ll let you know if that happens.

5 What kinds of documentation can I send? For eligible health care expenses, send a copy of your receipt with your claim form. You ll also need to send one of the following: 1. A copy of your Explanation of Benefits (EOB) the statement you get each time a medical or dental claim is sent to your health plan. 2. An itemized statement or receipt with: Type of services provided (including prescription name) Date of the service Name of the person who received the service Provider s name Amount due after insurance These types of documentation can t be used to verify your claims: Credit card receipts Cancelled checks Billing statement showing a previous balance or amount due Before you send your form check for these common mistakes: Did you sign and date the form? Did you include all your documentation? If there s more than one expense listed on a receipt, be sure you circle each one. Don t highlight the expense items. Did you fill out the claim form completely? Does the documentation match the amount you re asking for? Did you keep a copy of your claim form? Did you send copies of your receipts? You ll want to keep the original receipts for your records. For some expenses, additional information is needed from your doctor. This is required when the same service can be an eligible or non-eligible FSA expense based on if it s medically needed. If it s needed, you ll need to provide a Letter of Medical Necessity (LMN) from your doctor. You can find this form on healthpartners.com/centracare. Common expenses that require an LMN include chiropractic care, massage therapy, acupuncture, some over-the-counter (OTC) items and weight loss programs. What documentation do I need for an orthodontia claim? Submit a health care expense form with your documentation, such as a receipt or itemized statement from the dentist. Make sure your documentation has the payment date and indicates it was for orthodontics.. If the expense occurred in the FSA election plan year, you ll get reimbursed up to the amount in your FSA. Can I use my FSA for OTC medicine, and how do I get reimbursed? Yes, you can use your medical FSA for over-the-counter (OTC) medicines in some cases. You need a prescription from your doctor or provider for eligible medicines, such as cold medicine and pain relievers. This is required by the IRS. For OTC non-medicines, such as bandages or contact solution, usually only a detailed receipt is needed. Can I use my prescription debit card to pay for OTC medicine? The prescription debit card can only be used to pay for prescribed medications. You can t use it for OTC medicines, bandages or contact solution. Using your prescription debit card for FSA purchased When can I use my debit card? Continuing in 2018, if you re on a CentraCare medical plan through HealthPartners, prescriptions are not reimbursable through the health reimbursement account (HRA). If you sign up for a health FSA, you ll get prescription debit card to pay for prescriptions right at the pharmacy. When will I receive my debit card? You will receive two debit Cards within 7-10 business days after you sign up for your FSA. Or, you can call Member Services to request another set. Reminder, if you already have a debit card we will add your 2018 elections to this card. You will not get a new card in Be sure to save your receipts for prescription purchases made with your debit card. In some cases, you may be asked to verify that your expenses comply with IRS rules. Receipts must show: The merchant or provider name The service or item received The date and amount of purchase If more information is needed, HealthPartners will send you a letter detailing the transaction and what additional documents are needed.

6 If I have to change my name, will I automatically get new debit cards? You won t automatically get new prescription debit card if you change your name. Contact Member Services and we ll send you a new set of debit cards. Where can I use the card? The card can be used to pay for eligible prescription expenses where Visa is accepted. Be sure to check your plan documents or visit healthpartners.com/myfsa for a complete list of eligible expenses. If your card card isn t accepted, you can submit claims through the mobile app, online or through mail or fax. You can find these forms at healthpartners.com/centracare or by calling Member Services. How will the card work in participating pharmacies, discount stores department stores and supermarkets? Using the card is as simple as any other debit or prepaid card you may have used. It can only be used for eligible expenses, so if you have other items that aren t covered, you ll be asked for a different payment method for them. 1. Bring prescriptions and other purchases to the register. 2. Use your card for payment. 3. If the transaction is approved (there needs to be enough money for FSA eligible items), the amount is deducted from your account. 4. If you have non-prescription FSA items, you ll need to pay for them a different way. 5. If the transaction is declined, the clerk will ask for another form of payment for the total amount of the purchase. 6. Keep your receipt. It will identify the FSA eligible items and may also show a subtotal of the FSA eligible purchases. These transactions are validated based on the provider s system. If the card is used at a provider with an eligible code, the transaction will go through and be considered valid by the IRS. If a provider s system can t validate the expense, your card won t work and you ll need to submit that expense either online or manually. The card is actually a prepaid card. But, since there is no "prepaid" selection available, select Credit if you are asked. You don t need a PIN number and you can t get cash with the card. How long do I have to use my debit card for this year s expenses? You can t use your debit card for expenses once the plan year has ended. For example, you can t use the card in 2018 for 2017 expenses. If you still have 2017 expenses to submit in 2018 you ll need to do it through the app, online or manually. Why do I have to submit documentation for expenses at my doctor, dentist or pharmacy? When the usual processes can t verify your expense, additional documentation is needed. Some reasons are: Delay in information to verify purchase Missing information on a claim Debit card purchase at a provider that can t verify an expense What if my card isn t accepted at a location? The card won t be accepted at locations that do not offer the eligible health care services, such as hardware stores, restaurants, bookstores, gas stations and home improvement stores. The most common reasons why a card may be declined are: The card has not been activated. The card has been used before the 24- hour period after activation is over. There isn t enough money in the FSA account to cover the expenses. Non-qualified expenses have been included in the transaction. (Try again with only the qualified expense.) The merchant is encountering system problems. The pharmacy, discount store, department store or supermarket cannot identify FSA eligible items at checkout according to IRS rules. When and how is my reimbursement coming? Your direct deposit information will be provided by your employer. Reimbursements take up to two weeks to process. Requests are processed and paid on a weekly basis. When HealthPartners gets the reimbursement request, it can take five business days to pay, pend or deny the request. Who gets the reimbursement for a medical claim? FSA reimbursements for medical claims go to you. If you are responsible for any care costs after a claims goes through your medical plan and HRA (if you have one), it will go to your FSA. As long as there s enough money in the account, the reimbursement will be sent to you. You re responsible for paying the bill from your provider.

7 What happens if I submit for expenses and I don t have enough money in the account? You should submit the total expense for services or dates that have already taken place. For your medical expenses, HealthPartners will only reimburse you up to the amount you chose to contribute for the year. Something s not working. Now what? For basic information and forms, visit healthpartners.com/centracare or call Member Services. They re available Monday through Friday from 7 a.m. to 7 p.m. CT at Why haven t I gotten my reimbursement yet? Reimbursements can take up to two weeks to process. Your reimbursement request could be declined or postponed if you don t have enough money in your FSA. There are a few reasons this could happen. You may have already spent all of the money you elected to set aside. For medical FSAs, the full amount is added at the beginning of the year, but once you ve spent it all, it s gone. Be sure to check your online account for messages. We ll also send an to your personal address when you have a new message. These messages may be used when requesting additional documentation or if there is an issue with a claim. You can keep up with your current balances and reimbursement requests in your online account at healthpartners.com/centracare or on your myhp app. Why isn t my debit card working? If a prescription debit card purchase works at the point of sale, the purchase might still need to be verified as an eligible expense. If a debit card purchase can t be verified as a valid FSA expense, HealthPartners will notify you for more documentation. The card will be suspended if documentation isn t received within 90 days after request for documentation. It could also be suspended if an ineligible expense was paid for with your card. If this happens, you ll need to pay back the FSA (or it will be deducted from a future reimbursement). How do I un-suspend my prescription debit card? A prescription debit card can be un-suspended once you provide the requested documentation for the purchase in question. If an ineligible expense was paid for, it will be un-suspended once the FSA is paid back. What if I lose my receipts or I accidentally swipe the card for something that s not eligible? Usually the service provider can recreate an account history and provide a replacement receipt. In rare cases when a receipt cannot be located, recreated, or if the expense is ineligible for reimbursement, you may need to pay back the reimbursement. You can send a check or money order to HealthPartners for the amount so it can be credited back to your FSA account. The ineligible amount may be taken out of future claim reimbursements too. What if I lose my prescription debit card? If you lose your card or it s stolen, call HealthPartners as soon as you realize it s missing. HealthPartners can turn off your current card and issue a replacement. There is no fee for a lost or stolen card. If we re notified within two business days, you won t be responsible for any charges made to the card. If you don t let us know that the card was lost or stolen within two days, you might be responsible for a portion of the charges (if any were made). What if I need more than two debit cards? You can order additional cards for a small fee, which will be deducted directly from your account. You can order them by calling Member Services. Remember, we re here to help. If you have any questions about your FSA or other plan and care questions, call Member Services Monday through Friday from 7 a.m. to 7 p.m. CT. They re available at